Industrial Energy Transformation Fund (IETF) Explained

Celtic Dynamics is proud to support industrial businesses in the UK in securing funding through the Industrial Energy Transformation Fund (IETF)—a major government initiative aimed at reducing energy use and accelerating the shift to a low-carbon future. With up to £500 million available across three phases until 2028, the IETF is a cornerstone of the UK’s strategy to boost energy efficiency in high-usage sectors while promoting industrial innovation and decarbonisation.

Our team of specialists works directly with manufacturers and other energy-intensive businesses to assess eligibility, build competitive applications, and manage successful projects that align with IETF goals. We bring clarity, strategy, and sector-specific expertise to what can be a complex and highly competitive process.

What is the IETF?

The Industrial Energy Transformation Fund (IETF) is a UK government fund managed by the Department for Energy Security and Net Zero. It supports businesses with high energy consumption to cut costs and reduce carbon emissions through the deployment of energy efficiency measures and low-carbon technologies.

Originally launched in 2020, the IETF has been structured into three phases. It is open to businesses in England, Wales, and Northern Ireland, with a separate scheme managed by the Scottish Government for sites in Scotland. The fund is particularly suited for companies in the manufacturing and data centre sectors, where energy use is significant and the potential for carbon savings is high.

The IETF co-funds capital investment in a range of technologies—from industrial heat recovery systems and advanced motors to the installation of low-carbon fuels and electrification of heat processes. The fund also supports feasibility studies, front-end engineering design (FEED) studies, and other preparatory work that leads to full deployment.

Key Details: IETF Phase 3 (2024–2028)

• Total Funding Available: Up to £185 million

• Spring 2024 Competition Window: Opened 29 January 2024, closed 19 April 2024

• Next Window: Expected in late 2024

• Eligible Applicants: Industrial businesses with high energy use (primarily manufacturing and data centres)

• Project Types Supported:

  • Deployment of industrial energy efficiency technologies

  • Low-carbon fuel switching

  • Electrification of heat processes

  • Decarbonisation feasibility and engineering studies

• Geographic Scope: England, Wales, and Northern Ireland (separate scheme for Scotland)

For full eligibility criteria and application guidance, applicants are encouraged to refer to the official competition page.

How Celtic Dynamics Can Help You Access IETF Funding

At Celtic Dynamics, we specialise in navigating the complexities of UK public funding schemes like the IETF. Our approach is tailored and hands-on, ensuring that your application is competitive, compliant, and aligned with the strategic priorities of the fund.

Eligibility Assessment
We begin by evaluating your site’s energy profile, business activity, and the proposed project scope to ensure it matches IETF funding criteria.

Business Case Development
Our team works with you to develop a robust business case that demonstrates measurable energy savings, carbon reduction, and strong return on investment. We ensure that your proposal aligns with fund goals around decarbonisation, innovation, and economic impact.

End-to-End Application Support
We manage the full application lifecycle—from drafting and technical documentation to budget planning and submission. Whether you need full service or expert guidance for your internal team, we ensure nothing is missed.

Post-Award Project Delivery
After a successful award, Celtic Dynamics can help manage reporting obligations, track progress against agreed outcomes, and ensure your business continues to meet IETF compliance and delivery requirements.

The Benefits of IETF Funding for Your Business

Accessing the Industrial Energy Transformation Fund offers a range of benefits for industrial businesses, including:

• Reduced energy bills through investment in modern, efficient technologies

• Lower greenhouse gas emissions aligned with net zero targets

• Enhanced operational resilience and productivity

• Increased eligibility for future sustainability grants and incentives

• Improved reputation and stakeholder confidence through government-backed funding

For businesses already planning investment in energy-intensive processes or low-carbon innovation, IETF funding can make these improvements commercially viable and accelerate return on investment.

Partner with Celtic Dynamics

Celtic Dynamics has a track record of helping businesses across the UK unlock public funding for energy and innovation projects. Whether you are exploring IETF Phase 3, preparing for future competition rounds, or looking to align existing capital investment plans with the IETF framework, our team is ready to help.

Get in touch today for a FREE consultation and discover how we can help your business secure IETF funding and drive long-term transformation.